Shell’s Appeal of $54M Damages Award Rejected

(CN) - The Supreme Court on Monday denied an appeal from Shell Oil to review a $54 million punitive damages award over a royalties dispute that dates back to the 1970s.

Trustees of royalty owners sued Shell for not paying $750,000 in royalties under an Oklahoma lease from 1973 to 1985.

The jury added 12 percent a year in interest, which put compensatory damages at over $13 million.

Shell argued on that a Texas Federal Court decision to award $53.6 million in punitive damages was excessive since it was 70 times the principal damage amount of $750,708.

The jury then added the punitive damages for a total award of $67 million.

The case was Shell Oil Co. v. Hebble (10-349).

Subscribe to Closing Arguments

Sign up for new weekly newsletter Closing Arguments to get the latest about ongoing trials, major litigation and hot cases and rulings in courthouses around the U.S. and the world.

Email *

Submit